In case BG in the form of performance security is forfieted due to non performance of contract amounts to GST liability.
And if liable then the vendor will claim the input , but this being such forfeiture of panel nature , how can GST input be given to such vendor
Plz reply on such issue...
GST Applicability on Forfeited Bank Guarantees as Performance Security: Input Tax Credit Claim for Penal Nature? A query was raised regarding the applicability of Goods and Services Tax (GST) on the forfeiture of a bank guarantee (BG) used as performance security due to non-performance of a contract. The concern was whether GST liability arises in such cases and if the vendor can claim input tax credit despite the forfeiture being of a penal nature. A response referenced a ruling by the Appellate Authority for Advance Ruling in Maharashtra, which addressed similar issues involving the Maharashtra State Power Generation Company Limited. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
